Get in front of the next tech bubble

There’s a huge undercurrent of innovation along with the bubble-blowing bull market in tech right now, and I think we can stay ahead of the curve by connecting some of the dots.

Some of my VIX call hedges, those with the November expiration dates obviously, expired last week worthless. That’s OK, being that they were hedges. I’ve been building up cash and hedges more aggressively of late, staying with our bubble-blowing bull market net long positioning overall. I still have some more December expiration VIX calls remaining on the sheets as hedges and if the markets continue to blow higher, we’ll likely see those expire worthless too — even as our overall portfolios would likely then be at yet new all-time highs. A wise mentor of mine used to tell me when bidding me good-bye, “May you lose money on all your hedges,” because that likely means your real portfolio is therefore rocking.

Remember the crash that came after the year 2000? I personally don’t think this current stock market bubble is about to pop as I think the fiscal and monetary policies of the current regimes in place around the developed world are set to blow these asset bubbles bigger than ever — before they crash yet again some day. Just not yet.

Meanwhile, if you haven’t tried Spotify, you’re missing the entire wave of the future. Spotify’s got radio station technologies just like Pandora and iTunes, but for about the same price as a Netflix subscription. I have access to actually downloading and saving most any song on the planet in the highest quality digital format available these days. I don’t use the radio much. I explore and search and download entire albums from artists, song writers, producers or any other filter I might decide to pull from. Spotify isn’t public yet but I expect it will come public or get bought for billions in the next three to five years. $BITCOIN

What We’ve Learned – Lots of interesting random thoughts from my favorite music analyst, Bob Lefsetz, in this one. But this passing quote from Bob about iPhone versus Android is an absolutely fantastic insight based on our old “Flip It” concept: “Huawei Android phones are so cheap maybe Apple was right not to compete at the bottom of the market.”

Cody Willard writesRevolution Investingfor MarketWatch, posts the trades from his personal account atTradingWithCody.com, which is not affiliated with MarketWatch and is the largest shareholder in Scutify‘s parent company, Wall Street All-Stars. At time of publication, Cody was net long Amazon, Apple, Google, Sandisk, VIX, Facebook and net short Pandora. Follow Cody on Twitter attwitter.com/codywillard.

Story Conversation

About The Cody Word

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com He is the founder of WallStreetAll-Stars.com and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and is on the University of New Mexico Alumni Board. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. Cody, a former hedge fund manager, and his stock picks and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.